The “Great Equalizer”

Jun 1996 //
Inflation
Economics

Many economists refer to inflation as a hidden tax, although I like to think of inflation as the “great equalizer.”  When a society tries to pursue a national level of production beyond its production possibilities frontier by creating and spending money, price increases (inflation) deny that society the purchasing power benefits of the extra money—ensuring , as Flip Wilson might have said, “What you actually produce is what you get.”